The CDS defaults are the issue! AIG is in big trouble...according to CNBC if they dont get the $40 billion in the next few days...they geta downgrade, then the REAL fun beings!
I would imagine that a bunch of banking and finance types all around the world are going over some of the lectures on free markets given them by their US colleagues with a wry smile or two.
The FIRE (Finance, Real Estate, Insurance) economy is being extinguished this evening and will be gone for years....something tells me the Bush admin is not going to be able to kick the can into the next administration....all on this poor guys watch.......history will not be kind.
BTW, I suggested Friday or Saturday that the Fed wouldn't intervene in a Lehman bankruptcy.... could the Fed send me a pony for that minor prognostication?
Welcome to the United Socialist State Republic of America
Comrades Bush, Paulson and Bernanke Welcome You to the USSRA (United Socialist State Republic of America) Roubini Global Economics (RGE) Monitor roubini-monitor/ 253529/ comrades-bush-paulson-and-bernanke-welcome-you-to-the-ussra-united-socialist-state-republic-of-ameri ca/
Socialism is indeed alive and well in America; but this is socialism for the rich, the well connected and Wall Street. A socialism where profits are privatized and losses are socialized with the US tax-payer being charged the bill of $300 billion"
"This is madness, this is insanity, they have more than doubled the American national debt in one weekend for a bunch of crooks and incompetents. Im not quite sure why I or anybody else should be paying for this," Rogers told "Squawk Box Europe."
This is a severe body blow to the fast diminishing Middle Class America. They might not know it yet but they will in near future !
Vote McSame if you want to turn America into the USSRA banana republic.
Vote Obama if you want the United States of America.
Free Buffet now all-day every day at BAC. Very full employees are then rushed over to FED to "make" collateral that is acceptable at the window. Besides no longer any stigma...
Since, like forever, the entire insurance industry has lobbied (with bigtime bucks and threats to pols) to totally escape ANY federal regulation or supervision. Insurance is ONLY regulated (often ineffectively) by state insurance bodies.
So, here we have one of the biggest of the insurers pushing up to the teats of the federal sow to get some nutrition. Where's Nancy when you need her to 'just say NO'?
"The Wall Street Journal reported that Bank of America had entered into merger talks with Merrill Lynch & Co., citing unidentified people..." (Bloomberg)
And now I'll lay off the caps while I lay it on thick.
CR and Tanta are serious people, and therefore fallibly human. Like many of us, they too are monitoring HaloScan for portents beyond Krugman's silly white smoke/black smoke Papal analogies.
And so I say: Nemo to Pillsbury! Gavshire Hathaway, the candles! ipodius, stat, to forks and knives!
It is time and forthwith to celebrate 1,000 HaloScan Visitors Online, with no less mirth and prematurity than did CNBC when Miss Dow Jones topped 14,000! Wheel out the cake, and save for Sebastian the stale rump slice!
I'm going to ask to freeze our open positions first thing AM. (No disclosure, but I'm in NYC and dependent on finance to some extent.) I won't be the only one, though maybe the smallest and least consequential.
WM next week?????.
Adrenaline is pumping up hard for lots of people.
After WM, then AIG then City. Man, too many things to keep up. So many more (Ford, GM, Chhrysler...) to come.
Comrade cartoonists: Would you be so kind as to diagram where all the money is coming from and where it's all going? Please include bridge loans, equities, cds, repos, and any non carbon based fungible collateral?
PPT sorry to hear that. I am navigating through an acquisition that will see 300 of the 400 employees at my company get let go - we are obviously that which is being acquired. Good luck.
1. Lehman declares bankruptcy (or about to)
2. BofA buys MER (dolts of the decade...there's more to this story without a doubt)
3. Now AIG begs for FED help else upcoming force majeure equivalent... this is nuts.
And we have WaMu in the batters box.... gonna need more popcorn.
Sheeeit, the rest of the lineup is insane too.
Wachovia after WaMu, CapOne, ...
And AIG wants a bailout? If Crispy is right (and I think he is) then the whole friggen thing melts this week.
@Frank'll Tank - I've got money in MM accounts to buy a small place - heck, I've got enough to buy 3 or 4 small places, but I want to pay for college, too. If colleges are going to be an option in this environment.
um...this is a financial event effecting the economy? Wasn't it the problems in the real estate/economy that caused this and will cause more in the future? Huh?
Tommorow will not be "the day." Wait a couple weeks for the real long lasting carnage. This will not be US driven. It is past that now. The US no longer controls its financial destiny.
WSJ:The Federal Reserve is expected to expand its lending facilities, taking a wider array of securities, including equities, as collateral for its loans.
Equities? Jesus H Christ, we have just entered a new era. Did the Japanese central bank ever do that?
I think it's safe to say, the dollar has topped and gold has bottomed.
why, where does the BofA gets money to pony up for MER? it is the deposit money that is used for this.
Who has cash? Hedge funds and depositors. Hedge fund will be slaughtered through margin loan callback and hign interest on rest of the loan. The choices for hede funds are becoming limited. So yes, they will loose lot and they dont care losing their inverstors money anyway. Those hedge fund managers are crooks living on their investors money.
"Yossarian writes:
BTW, I suggested Friday or Saturday that the Fed wouldn't intervene in a Lehman bankruptcy.... could the Fed send me a pony for that minor prognostication?"
AIG going down.....can't happen...this is one of the too big to fail....they are more important than even General Motors...too many public folks pensions and life insurance policies depend on AIG. The shadow banking unwind of an AIG is way bigger than Bear Sterns on the system...the fed might be backed into a corner on this one.
100 bucks sean asked who is Don Luskin..Somebody nice like Liz should respond perhaps using legal terms and lets not quote the bible on this one. Don has a big Christian audience in the Bible Belt.
Naw, from Portland, Oregon. The raccoon.. well, I dug a hole in the vacant lot across the street (that is an abandoned 'infill Mcmansion' development, said a few words at the service, chanted 'Hic est domus Paulson', and threw him in.
There isn't a free market in this banana republic anyway so it's about time to just nationalize all the pricks and be done with it.
Anonymous | 09.14.08 - 9:57 pm | #
first, fed has absolutely no - and I repeat - no mandate for this. You can play beer goggles with the BSC bail and maybe make it look legally feasible.
But these guys have no mandate - way out of their charter - for opening up the taps to a state regulated entity.
I doubt that the congress will say much about this farce, apart from some clucking.
The dollar is long-term toast. Dead.
The fed is simply going to not have enough on their books for all of the crap they're going to take on. So in answer to the earlier taxpayer question, ipodius, they will probably have to go to the congress for appropriations and permission to just keep printing, if they even have to do that.
They'll blow thru their balance sheet like a NY hooker. And nobody has the nerve to tell them to stop.
Lots of comments here suggesting that these actions of the Fed et als are socialistic. From my reading of history, it appears to be far more like corporate statism, i.e. the F word, Fascism, or, if you will, mercantilism at high speed. We are so screwed.
Government has rescued private sector again. Economy would have collapsed without government.
I challenge anyone to show me a modern economy without taxes and regulation. Reaganomics was a bunch of nonsense and we are reaping our just desserts...
Flash Dylan just called this day historic for the effect on all forms credit. His head has been up his ass so far this year, he never saw this coming? This man is a fool.
If my recollection from years ago is still correct, then the state department of insurance - the state in which that entity is chartered - will be on the hook.
By the way, the legacy state insurance regulation which predates the great depression has worked better then most regulation. The capital requirements are higher then lots of other types of financial institutions.
As a former insurance client of AIG, I do not have a lot of confidence in the financial stability of that side of the overall business. A tremendous amount of "domestic" state regulated business is controlled offshore.
Zigguart, are you familiar with the difference between Admitted and Non-Admitted insurance companies, in your terms, the licensed subs? Outside of Work Comp and Commerical Auto, most commercial insurance is non-admitted and therefore not backed up by state insurance trust funds.
For the audience here, most commercial insurance is written on admitted paper.
Historically, the last few insurers to go under were A-rated (Excellent) carriers. Regardless of backing by states' insurance guaranty funds, suggest you ask your agent or broker to replace your policy with a more conservative A-rated carrier, i.e. one that doesn't do many alternative risk financing deals like CDO's and the like.
You don't want to file a claim against a bankrupt insurer and stand in line to get paid.
Bill Frist?
Well that seems like a good reason, not.
Bagehot is rolling in his grave.
equities as collateral? yikes...better take only 75-80% on that value. jeez...
AIG going to the Fed for a handout? You gotta be kidding me.....this is unprecedented.
Hank probably sitting back with a hell of smirk on his face
So what does AIG really do? I take it they're not a bank.
In case you missed it, the phrase "miscalculated risk" was used just now on cnbc
Fed as pawn shop. Great...
ShiTe
I jsut secured employement with AIG. Will it be safe ?
Its for the wealth management division. (Managed accts in specific)
The CDS defaults are the issue! AIG is in big trouble...according to CNBC if they dont get the $40 billion in the next few days...they geta downgrade, then the REAL fun beings!
Fed with her legs about her ears...
PPT: Nobody knows anything.
In a few hours Europe will be awake. The Asian markets are closed. The U.S. Financial system looks to be going into meltdown. What do you do?
If your Chinese would you bail on dollars?
If your Japanese do you bring the money home?
If your in Europe? Sell financials?
PPT do you have your own book of business? If so take it elsewhere.
the company you keep.... shorting
WHOA 837 vistors. OMG never been like this
How can an insurance company go to the fed????
Doesn't Warren have about $40B cash laying around still? He did a few months ago, but that was before he went on his international shopping spree.
Let them fail and reorganize. They knew the consequences. No Bailout!
I pulled the carcass of a dead raccoon out from under my house this weekend. I wonder if I could use that for collateral.
Couldn't stink any worse than the MBS stuff that AIG owns.
I would imagine that a bunch of banking and finance types all around the world are going over some of the lectures on free markets given them by their US colleagues with a wry smile or two.
Hold on. Equities? These are not the sorts of illiquid assets that should be sent on to the Fed.
They must be talking about Rule 144 or Reg S stocks, right?
"In a few hours Europe will be awake."
I imagine all the people that care are already awake.
Did anyone notice Seidman calling out the SEC for removing leverage limits back in 2004 right after Harvey Pitt spoke?
WHOA 837 vistors. OMG never been like this
ChopperOne | 09.14.08 - 9:34 pm | #
Sheila's spies..
The USD is gonna get it up the a**hole
IS there anywhere streaming Hurricane Lehman on the intertubes?
If everyone posts one comment @ 9:36 we can make the thread absolutely unreadable... ready?
Doggy Dog World writes:
Hold on. Equities? These are not the sorts of illiquid assets that should be sent on to the Fed.
They must be talking about Rule 144 or Reg S stocks, right?
Doggy Dog World | 09.14.08 - 9:35 pm | #
No regular equities like Pets.com, Worldcom and Enron...
Taking equities is going to fail also...see Super SIV, TSLF, MLEC, etc...
AIG going to the Fed for a handout? You gotta be kidding me.....this is unprecedented.
Holy crap. The Fed really does have round heals and revels in the new reputation!
Got Popcorn?
Neil
The FIRE (Finance, Real Estate, Insurance) economy is being extinguished this evening and will be gone for years....something tells me the Bush admin is not going to be able to kick the can into the next administration....all on this poor guys watch.......history will not be kind.
AIG has losses because??
Bail 'em out...
NY real estate is about to get crushed
sir one bourbon, one scotch and one beer,,,
hold that, double them all up...it's been a really rough day
i got no money to pay the rent.
BTW, I suggested Friday or Saturday that the Fed wouldn't intervene in a Lehman bankruptcy.... could the Fed send me a pony for that minor prognostication?
Welcome to the United Socialist State Republic of America
Comrades Bush, Paulson and Bernanke Welcome You to the USSRA (United Socialist State Republic of America)
roubini-monitor/ 253529/ comrades-bush-paulson-and-bernanke-welcome-you-to-the-ussra-united-socialist-state-republic-of-ameri ca/
Roubini Global Economics (RGE) Monitor
Socialism is indeed alive and well in America; but this is socialism for the rich, the well connected and Wall Street. A socialism where profits are privatized and losses are socialized with the US tax-payer being charged the bill of $300 billion"
( and growing even more ).
US Is "More Communist than China": Jim Rogers
...
Stock Market News, Business News, Financial, Earnings, World Market News and Information - CNBC.com
"This is madness, this is insanity, they have more than doubled the American national debt in one weekend for a bunch of crooks and incompetents. Im not quite sure why I or anybody else should be paying for this," Rogers told "Squawk Box Europe."
This is a severe body blow to the fast diminishing Middle Class America. They might not know it yet but they will in near future !
Vote McSame if you want to turn America into the USSRA banana republic.
Vote Obama if you want the United States of America.
Free Buffet now all-day every day at BAC. Very full employees are then rushed over to FED to "make" collateral that is acceptable at the window. Besides no longer any stigma...
Since, like forever, the entire insurance industry has lobbied (with bigtime bucks and threats to pols) to totally escape ANY federal regulation or supervision. Insurance is ONLY regulated (often ineffectively) by state insurance bodies.
So, here we have one of the biggest of the insurers pushing up to the teats of the federal sow to get some nutrition. Where's Nancy when you need her to 'just say NO'?
OT,
less IB banks means not much competition for IB banks. Hedge funds are toast. They will be charded with hefty interest on their margin loans.
The banks are going to milk the cash cow (golden goose) before they die.
Anyone who has cash will be slaturred before we reach the bottom.
Why do I picture "Batman" Wall Street has turned on the "Ben" spot light.
HAIR-RAISING! HEAD-SPINNING! MiIND-BLOWING!
"The Wall Street Journal reported that Bank of America had entered into merger talks with Merrill Lynch & Co., citing unidentified people..." (Bloomberg)
And now I'll lay off the caps while I lay it on thick.
CR and Tanta are serious people, and therefore fallibly human. Like many of us, they too are monitoring HaloScan for portents beyond Krugman's silly white smoke/black smoke Papal analogies.
And so I say: Nemo to Pillsbury! Gavshire Hathaway, the candles! ipodius, stat, to forks and knives!
It is time and forthwith to celebrate 1,000 HaloScan Visitors Online, with no less mirth and prematurity than did CNBC when Miss Dow Jones topped 14,000! Wheel out the cake, and save for Sebastian the stale rump slice!
Why open the markets tomorrow. All the action is being done behind closed doors on the weekends. Just have Paulson state what the prices will be.
A question I asked on the other thread- which shorts get it in the ass tomorrow morning on Merrill Lynch?
THREAD MUSIC & HOMIE VID:
MONEY IN DA BANK - LIL SCRAPPY
YouTube -
thoughts: GS puts in the morning?
This is insane. Sunday nights used to be so boring.
And we have WaMu in the batters box.... gonna need more popcorn.
874 online!
Yowza.
Well, now that everything is starting to come undone, I suggest anybody short gold cover first thing in the morning.
Actually, cover everything only hold puts, calls, or equities.
Margin call mania in popular shorts!
Sell off in recent longs.
Just go crazy.
Someday this war's gonna end...
I see that there's been no statement from our illustrious president regarding these historical events.
And nobody seems to have noticed.
didn't their mothers teach them
beggars can't be chooders.
no bailout!
If you were a foreigner with significant equity holdings would you see the Fed Window being opened to them as a reason to keep holding?
I'm going to ask to freeze our open positions first thing AM. (No disclosure, but I'm in NYC and dependent on finance to some extent.) I won't be the only one, though maybe the smallest and least consequential.
S N above - what is this "slaturred" of which you speak?
And @Adam above - anyone who refers to George W Bush as "poor guy" in my presence will get a black eye. I promise.
Is Dryfly around? I'm thinking now might be a good time to start shopping for a country place with at least 10 acres for me and my kids. You think?
Sorry....tried to hit :36 mark. But I forgot for a sec.
Sorry. I am TECHNOLOGY worker. I have been recently hired to improve their wealth management division.
I am supposed to join em by OCT.
I am shite scared now
S N,
"Anyone who has cash will be slaturred before we reach the bottom."
Why?
If you scramble an AIG you get an omelet.
What we have here is an omelet; a 600 pound omelet.
947 visitors ?
has anyone seen 1000 here..
BS days were only 700 odd ?
This is one cute little sleight of hand.
The government wants this to look like they're taking a stand against bailouts, so they "let" LEH fail.
OTOH, they're putting BAC/MER together and opening up the credit floodgates, while providing god-knows-what assurances behind the scenes.
It's a stealth bailout, and the whole charade is simply meant to fool the taxpayer / retail investor.
the fundamental of the US economy are fine - Google Search
Bush McCain is just the same.
I see that there's been no statement from our illustrious president regarding these historical events.
And nobody seems to have noticed.
CathyG | 09.14.08 - 9:41 pm | #
He will when he sobers up..
Too late to buy country land. What will you exchange for it?
WM next week?????.
Adrenaline is pumping up hard for lots of people.
After WM, then AIG then City. Man, too many things to keep up. So many more (Ford, GM, Chhrysler...) to come.
Fed will take equities as collateral at the window.
PPT alive and well.
Comrade cartoonists: Would you be so kind as to diagram where all the money is coming from and where it's all going? Please include bridge loans, equities, cds, repos, and any non carbon based fungible collateral?
900+! Whoa!
PPT sorry to hear that. I am navigating through an acquisition that will see 300 of the 400 employees at my company get let go - we are obviously that which is being acquired. Good luck.
Taking equities - gosh the Fed must be rich and flush with newly minted cashola...
CNBC reading Paulson's statement without stutters..
sorry for typo, I meant Slaughtering.
We have solvency issue. So, from here on every investment banks and other banks will go down with lots of others.
Vince Ferrell is a Cramer mini me.
1. Lehman declares bankruptcy (or about to)
2. BofA buys MER (dolts of the decade...there's more to this story without a doubt)
3. Now AIG begs for FED help else upcoming force majeure equivalent... this is nuts.
And we have WaMu in the batters box.... gonna need more popcorn.
Sheeeit, the rest of the lineup is insane too.
Wachovia after WaMu, CapOne, ...
And AIG wants a bailout? If Crispy is right (and I think he is) then the whole friggen thing melts this week.
I got popcorn, and SKF. BOOOOYaahhh!!!!
Prima facie evidence of the PPT -- the Fed taking equities instead of forcing the schmucks to sell -- skeptics? Seems like it to me.
900+! Whoa!
Take the number of visitors on this site at 10 pm EST and subtract 350.
That tells you +/- where the DOW will open tomorrow.
@Frank'll Tank - I've got money in MM accounts to buy a small place - heck, I've got enough to buy 3 or 4 small places, but I want to pay for college, too. If colleges are going to be an option in this environment.
um...this is a financial event effecting the economy? Wasn't it the problems in the real estate/economy that caused this and will cause more in the future? Huh?
Tommorow will not be "the day." Wait a couple weeks for the real long lasting carnage. This will not be US driven. It is past that now. The US no longer controls its financial destiny.
"A financial event, not an economic event." Shmuck.
Could you buy a slighted used war at the window?
We have one we'd like to cash in.
Agree with Ron Paul on this: we can't afford war any more. Not with this shit going down.
WSJ:The Federal Reserve is expected to expand its lending facilities, taking a wider array of securities, including equities, as collateral for its loans.
Equities? Jesus H Christ, we have just entered a new era. Did the Japanese central bank ever do that?
I think it's safe to say, the dollar has topped and gold has bottomed.
ac - you forget to multiply times pi
;0
New thread
Great job, CR.
Why no mention of Citigroup's pending implosion? What will the richter scale record on that one?
Here in DC, the Beltway is backed up. Lots of tractor trailers of paper + tanker trucks of ink....
all headed to the Treasury.
ac - you forget to multiply times pi
;0
Multiply by the square root of pi squared and divide by pi.
Fed statement via wsj
Statements From Fed, SEC: Collateral Broadened; Working With Lehman - Real Time Economics - WSJ
ymex gold: up $23.20 to $787.70 (+2.95%)
The Money Honey just said hedge funds tits up while pushing out her chest a bit or it could be my new Toshiba flat screen.
stealthwii,
why, where does the BofA gets money to pony up for MER? it is the deposit money that is used for this.
Who has cash? Hedge funds and depositors. Hedge fund will be slaughtered through margin loan callback and hign interest on rest of the loan. The choices for hede funds are becoming limited. So yes, they will loose lot and they dont care losing their inverstors money anyway. Those hedge fund managers are crooks living on their investors money.
"Yossarian writes:
BTW, I suggested Friday or Saturday that the Fed wouldn't intervene in a Lehman bankruptcy.... could the Fed send me a pony for that minor prognostication?"
Yossarian from BigSoccer?
so where is Jas Jain (aka Bob Pretcher) with his prediction of deflation?
@suecris
take a wheelbarrow
whoops: typo above:
nymex gold: up $23.20 to $810.90 (+2.95%)
There is some good in all of this.
I won't have to listen to "we're bullish on America" anymore. Stupid damn steer. I always knew it had cosmetic surgery to attach plastic balls.
Good bye, says I.
Military boyz pass out ice in Galveston.
Banker boyz pass out in NYC.
1000 bloggers go wild in CR.
@Yossarian
I literally just had to get a paper towel and wipe the spit off my screen after reading your dead racoon comment
...and squirrel futures throught through the roof.
Hey guys the economy is well check out this article from Don Luskin on The WAPO today : Quit Doling Out That Bad-Economy Line - washingtonpost.com
Mike on LI,
We have a score to settle, my friend. Gary's ____ video was one thing, but what you served up last night will haunt my ears and eyes forever.
Take it like a man. You too Gary.
YouTube -
The pain is finally trickling up..
About time and hope these assclowns fall hard and fast !
There isn't a free market in this banana republic anyway so it's about time to just nationalize all the pricks and be done with it.
AIG going down.....can't happen...this is one of the too big to fail....they are more important than even General Motors...too many public folks pensions and life insurance policies depend on AIG. The shadow banking unwind of an AIG is way bigger than Bear Sterns on the system...the fed might be backed into a corner on this one.
100 bucks sean asked who is Don Luskin..Somebody nice like Liz should respond perhaps using legal terms and lets not quote the bible on this one. Don has a big Christian audience in the Bible Belt.
Man-Moth,
I see your Lady In Red and raise you another 80's atrocity
fyi Adam, there were folks saying exactly the same thing about lehman earlier in the week.
Yossarian from BigSoccer?
Naw, from Portland, Oregon. The raccoon.. well, I dug a hole in the vacant lot across the street (that is an abandoned 'infill Mcmansion' development, said a few words at the service, chanted 'Hic est domus Paulson', and threw him in.
Means.. 'this is the house of Paulson'.
Forget Helicopter Ben... it is Bailout Be
There isn't a free market in this banana republic anyway so it's about time to just nationalize all the pricks and be done with it.
Anonymous | 09.14.08 - 9:57 pm | #
It's illegal to nationalize pricks in Texas.
Mobius is sounding very scared on Bloomberg. His voice is shaking while claiming all is great.
Not good, Mark!!!
wow 963 onliners!
history is being made everywhere
once again,
Congrats to CR and Tanta for having us here tonight.
So, my wife has a policy with AIG. Should she be worried?
MER/BSC deal an all stock/no cash.
HMMMMMM...
This is insane, we can't allow to continue to bail out fraud and friends of Treasury or friends of Buffett or some drug lord that has dope to unload!
So, my wife has a policy with AIG. Should she be worried?
dewey | 09.14.08 - 10:02 pm | #
She needs to die tonight.
994 visitors -- so close!!!
I swear I feel like I've visited this thread about 1000 times just in the past hour
998, and a new "summary" thread...
THIS IS A BAILOUT! DISCOUNT WINDOW IS WIDE OPEN! WELCOME TO HYPERINFLATION!
Ouch FFDIC, that's harsh... but true
FFDIC writes:
So, my wife has a policy with AIG. Should she be worried?
dewey | 09.14.08 - 10:02 pm | #
She needs to die tonight.
FFDIC | 09.14.08 - 10:04 pm | #
That's hilarious. Wife isn't as amused as I am though.
FFDIC,
Remember your gout. I still need your calming influence over me at lunch.
Ah screw it. REMEMBER THE ALAMO!
McSame thinks the economy is fundamentally sound...
1003 visitors!
1005 visitors!
If anyone reading this votes for McSame and more of the ownership society, well God bless you...
FFDIC,
Isn't 2009 the year to die to escape estate taxes?
Just wondered why my son keeps reminding me.
holy shit.
so, what's the upshot and the next move here?
first, fed has absolutely no - and I repeat - no mandate for this. You can play beer goggles with the BSC bail and maybe make it look legally feasible.
But these guys have no mandate - way out of their charter - for opening up the taps to a state regulated entity.
I doubt that the congress will say much about this farce, apart from some clucking.
The dollar is long-term toast. Dead.
The fed is simply going to not have enough on their books for all of the crap they're going to take on. So in answer to the earlier taxpayer question, ipodius, they will probably have to go to the congress for appropriations and permission to just keep printing, if they even have to do that.
They'll blow thru their balance sheet like a NY hooker. And nobody has the nerve to tell them to stop.
Lots of comments here suggesting that these actions of the Fed et als are socialistic. From my reading of history, it appears to be far more like corporate statism, i.e. the F word, Fascism, or, if you will, mercantilism at high speed. We are so screwed.
Homedad,
Actually the Fed under an emergency mandate may lend to whomever they wish.
Even a chicken farmer in Arkansas.
Oh wait. That's how we elected Clinton!
994 visitors
ope. back above 1000. I thought we had crested.
I saw 1016 visitors. But does the system double count people like me with multiple Haloscan windows open?
Republican ownership society results in massive government bailout of banks.
Enough of this crap. Vote for Obama...
Mike,
I'm sorry about that, and want to make it up to you. Here you go, pal:
YouTube -
Government has rescued private sector again. Economy would have collapsed without government.
I challenge anyone to show me a modern economy without taxes and regulation. Reaganomics was a bunch of nonsense and we are reaping our just desserts...
Flash Dylan just called this day historic for the effect on all forms credit. His head has been up his ass so far this year, he never saw this coming? This man is a fool.
Hi all,
I have a policy with AIG as well. What happens if they go under, assuming I don't die tonight..or tomorrow, or hopefully anytime soon?
Mouse:
If my recollection from years ago is still correct, then the state department of insurance - the state in which that entity is chartered - will be on the hook.
More of your tax dollars at work.
Homedad43:
Thanks much for the information!
Hey guys.....
AIG is complex and it is impossible to make a 100% general statement about it.
However, the US licensed insurance subs should be fine.
Panic if you want to.
By the way, the legacy state insurance regulation which predates the great depression has worked better then most regulation. The capital requirements are higher then lots of other types of financial institutions.
As a former insurance client of AIG, I do not have a lot of confidence in the financial stability of that side of the overall business. A tremendous amount of "domestic" state regulated business is controlled offshore.
Hank is the F-ing a-hole who was standing right next to Sandy Weil to get Glass-Steagle replealed
AIG go to f-ing hell you pirate crooks!
Zigguart, are you familiar with the difference between Admitted and Non-Admitted insurance companies, in your terms, the licensed subs? Outside of Work Comp and Commerical Auto, most commercial insurance is non-admitted and therefore not backed up by state insurance trust funds.
@ Ralph Knader
For the audience here, most commercial insurance is written on admitted paper.
Historically, the last few insurers to go under were A-rated (Excellent) carriers. Regardless of backing by states' insurance guaranty funds, suggest you ask your agent or broker to replace your policy with a more conservative A-rated carrier, i.e. one that doesn't do many alternative risk financing deals like CDO's and the like.
You don't want to file a claim against a bankrupt insurer and stand in line to get paid.